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Birkenstock Slides on IPO
A rough start for the Birkenstock (BIRK) IPO. Down 13% on the first day of trading. Buzz was that the IPO was massively oversubscribed, and allocations heavily favored the Long-only community. Yet another failed large scale IPO. Fair value for this stock, when the dust settles, is about 30. Catterton striking while the iron is hot on this one, and it’s to the detriment of shareholders. Six months down the road -- if not much sooner -- this is on track to be a broken IPO. Sustaining a 9-10bn valuation is a pipe dream. We think it's worth $6bn, nearly 50% higher than where Catterton bought it just two years ago.
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